© Elena Kaledinova,
manager BCR Consultancy
If you go to a new country
as a rule you already have some ideas about this country. The question is to
which extent your expectations coincide with the reality. Are you ready to
experience quite different cultural traditions, living style, differences in
communication and business activity?
The fact is that you have
already absorbed all rules and habits of your society and you can easily act
in the framework of these rules. Of course you speak perfect your own
language and know everything about how to behave yourself in various
situations. Let’s suppose you are a Dutch businessmen going to Russia. What
is the reason of your intentions? Perhaps you want to expand your business
to Russia or your want to attract Russian businessmen to invest in your
business. What is the main goal? Apparently to win a new market and find new
opportunities for doing business.
Let’s try to imagine what
difficulties wait for you. If you are going to start some project in Russia
the most important thing is your ability to understand thoroughly your
business partner or people who will work side by side with you. The most
short way to this goal is to speak Russian. Suppose this is not the case.
You should ask some professional translators to help you to get into a
contact with your business partner, then you prepare some papers to discuss
and might go to Russia.
Of course there is a
possibility to negotiate via telephone or e-mail but sometimes it is long
way to reach conclusions. One Dutch company has been dealing with Russian
company for 2 months. They discussed all possible aspects of collaboration,
namely the description of rendered services, cost of travelling and
accommodation in Russia, even the date of arrival to Russia. But on the
certain moment they heard that Russian company had no money to pay. Project
was stopped and time was wasted. You can draw a conclusion that the personal
contact is always the best way to communicate. And don’t be ashamed to ask
about the capacity to pay your services or your goods.
On the other hand there
are a lot of positive examples of doing business with Russia. In the latest
data of Russian Federal Bureau of Statistics the foreign investments by the
end of June 2005 made up 90,8 billion $. Among the main investors are
Cyprus, Luxemburg, the Netherlands, Germany, United Kingdom, USA and France.
The most attractive
sectors of Russian economy for foreign investors are following (according to
information of issued in Russia “Direct Investments” magazine № 01 (33)
2005):
First half year
2004:
Wholesale trade and
retail - 6129 million $
Extractive industry
- 5625 million $
Manufacturing
industry - 4679 million $
Real estate
activities - 1428 million $
Transport and
communication - 359 million $
Only in 2004 growth of
customer demand in Russia made up 12 % and retail sales increased 21%. In
food sector natural fresh products and semi-prepared foods are in
constant requisition, in non food sector demand for furniture and
household appliances (washing machines, microwave ovens, TV sets and so on)
grows very quickly.
Many Dutch companies
start business in Russia and open offices in Moscow, St.-Petersburg and
other big cities in Russia because the Russian economy is really booming.
“The economist” magazine in September 2005 published the following data:
